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HCL Tech falls 8% after USD 1.8 bn deal with IBM

Press Trust of India  |  New Delhi 

Stocks of slumped nearly 8 per cent on Friday after the company announced acquisition of select software products for USD 1.8 billion in an all-cash deal.

After a negative opening on BSE, the scrip further declined 7.6 per cent to hit an intra-day low of Rs 935.

At 1300 hrs the stock was trading at Rs 951.65 apiece, down 5.96 per cent from the previous close

On NSE, the same trend followed as the company's stock fell by 7.7 per cent to an intra-day low of Rs 934.45. Later, at 1300 hours, the stock was trading 6.06 per cent lower at Rs 951.15.

HCL Technologies, in a regulatory filing said, it will acquire select software products for USD 1.8 billion (over Rs 12,700 crore) in an all-cash deal.

The the deal is subject to "completion of applicable regulatory reviews" and is slated to close by mid-2019.

The deal entails seven products in areas including security, marketing and collaboration solutions, and represents a total addressable market of more than USD 50 billion, the firm said in the filing.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 07 2018. 13:30 IST